Motor dealer Arnold Clark has reported record sales of £3.35 billion for the 2015 year to December as used car sales soared.

The Glasgow-based group notes in accounts now filed with Companies House, turnover rose 2.2 per cent on the prior year on “exceptional growth” in used car sales, which rose 10.8 per cent to 175,526 units.

However new car sales dropped 8.4 per cent to 83,813 units, which Arnold Clark said was “largely a result of a large fleet contract that was not renewed due to the significant amount of working capital tied up in the agreement”.

Pre-tax profits for the year rose 2.2 per cent to £110.3 million as operating profit rose 1.7 per cent to £121.7 million, “primarily as a result of the increase in used car sales”.

Arnold Clark Finance Ltd, which covers vehicle management and daily rental business, “once again made a substantial contribution to group profits”, with turnover up 10.7 per cent to £559.2 million.

However profits from Arnold Clark Finance dipped 3.8 per cent to £15.5 million against an “exceptional” 2014 year for rentals buoyed by the Commonwealth Games and Ryder Cup.

Arnold Clark said it continued to invest in the 2015 year, with Inverness-based Ness Motor Group the most notable acquisition, which saw 100 staff join the group and gave Arnold Clark outlets in Inverness, Elgin and Perth.

Another notable acquisition was the purchase of West Midlands-based Midwest Motor Factors, which added six location and 80 staff.

The groups web offering, ArnoldClark.com was relaunched last November and overall sales enquiries through the website rose 30.2 per cent on 2014 on a 14.8 per cent increase in web traffic.

The company said early trading results in the 2016 year were “very encouraging” and predicts turnover and profit growth “will increase at similar levels in 2016”.

Chairman Sir Arnold Clark said: “In 2016 we expect that the new car market will remain relatively static, with used cars experiencing similar growth to 2015.

“Funding remains in place to take advantage of any opportunities that may arise and to overcome market volatility.

“Early trading results have been very promising and out strategic objectives remain unchanged: namely focusing on customer experience, product availability and widening the geographical footprint of the group.”

Arnold Clark Automobiles Ltd notes it employed 9,887 people on average in the 2015 year, up from 9,184 in 2014.